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The Michigan 514 form is a crucial document for businesses navigating the complexities of asset sales and tax clearance. It serves as a request for a Conditional Tax Clearance, specifically designed for sole proprietorships, partnerships, limited liability companies, or corporations that have sold most of their assets while maintaining their corporate structure. This form is issued under several public acts, highlighting its legal significance. Completing the Michigan 514 requires detailed information about the business, including its name, federal identification number, and the owners’ names and social security numbers. Businesses must also provide their trade name, street address, and dates related to incorporation and business operations. One key aspect of the form is its inquiry into whether the business will continue operations after the clearance, which can impact tax obligations. Additionally, if there are multiple locations or if the business has been sold, these details must be disclosed. The form emphasizes the importance of accuracy, as it must be signed by the owner or an authorized representative, under penalty of perjury. By submitting this form along with any unfiled tax returns, businesses can ensure they are compliant and ready to move forward with their operations or dissolution processes.

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Michigan Department of Treasury 514 (Rev. 09-12)

Date

Conditional Tax Clearance Request

Issued under the provision of Public Act 144 of 1921, as amended; Public Act 265 of 1947, as amended; Public Act 281 of 1967, as amended; Public Act 119 of 1980, as amended; Public Act 167 of 1933, as amended; and Public Act 94 of 1937, as amended.

IMPORTANT: This is a request for a Michigan Conditional Tax Clearance by a sole-proprietorship, partnership, limited liability company or corporation that has sold most of its assets, but the corporate shell will remain to continue iling tax returns (when due) until the corporation later determines whether it will ile a Certiicate of Dissolution with the Corporation Division.

This form must be completed in its entirety.

Name of Sole-Proprietorship, Partnership or Corporation, Limited Liability Company

 

 

 

Federal Employer Identiication Number or TR Number

 

 

 

 

 

 

Owner(s) Name(s) (if sole-proprietorship or partnership)

 

 

 

Social Security Number(s)

 

1.

 

 

 

 

 

 

 

1.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.

 

 

 

 

 

 

 

2.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Doing Business As (trade name)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Street Address of Location Requesting Clearance

City

 

 

State

 

ZIP Code

 

 

 

 

 

 

 

 

 

 

 

 

 

If a Corporation, Date Incorporated in Michigan (mm/dd/yyyy)

Date Business Started at This Location (mm/dd/yyyy)

 

 

 

 

 

 

 

 

 

 

 

 

Date Business Discontinued at This Location (mm/dd/yyyy)

Ending Date of Last Payroll at This Location (mm/dd/yyyy)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Are you continuing business activity after clearance?

If Yes, Expected Gross Receipts for the Year

 

 

 

 

 

Yes

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residence Address of Discontinued Taxpayer

Residence Telephone Number (including area code)

 

 

 

 

 

 

 

Does taxpayer operate more than one place of business?

If multiple locations, is clearance requested for the above location only?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yes

 

No

 

 

Yes

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Names and Addresses of Business Locations Still in Operation (use reverse side if necessary)

 

 

 

 

 

 

 

 

 

 

Have you sold or disposed of business to another entity?

If Yes, Date of Sale (mm/dd/yyyy)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yes

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

If Yes, Name and Address of Purchaser

 

 

 

 

 

 

 

 

 

 

Purchaser’s Federal Employer Identiication Number or TR Number

Is money being held in escrow pending receipt of a tax clearance?

 

 

 

 

 

 

 

Yes

 

No

Amount if Yes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Name and Address of Holder of Escrow Money

 

 

 

Attention:

 

 

 

 

 

 

 

Holder’s Telephone Number (include area code)

Month(s) Included on Final Federal 941 Return

 

 

 

 

 

 

 

 

 

 

Name and Location of Holder of Seller’s Books and Records

 

 

 

 

 

 

 

 

Certiication: I declare under penalty of perjury that I am the owner, oficer or, member of the business on which tax clearance is requested and that the information is true (Submit a Limited Power of Attorney (Form 3840) if not the owner, oficer, or member).

Print Name

Title

 

 

Signature

 

A business requesting a Michigan Conditional Tax Clearance should forward all uniled Michigan tax returns (up to the date of discontinuance) together with all remittances for those returns with this form to the address below. Mail form directly to: Tax Clearance

Section, Michigan Department of Treasury, P.O. Box 30168, Lansing, MI 48909.

➤ PDF File

Form Specifications

Fact Name Description
Governing Laws The Michigan 514 form is issued under several laws, including Public Act 144 of 1921, Public Act 265 of 1947, Public Act 281 of 1967, Public Act 119 of 1980, Public Act 167 of 1933, and Public Act 94 of 1937, all of which have been amended.
Purpose This form serves as a request for a Conditional Tax Clearance in Michigan for businesses that have sold most of their assets but wish to retain their corporate shell.
Eligible Entities Eligible entities include sole proprietorships, partnerships, limited liability companies, and corporations.
Form Completion The form must be completed in its entirety to be considered valid and processed.
Tax Returns Businesses must submit all unfiled Michigan tax returns along with the form and any remittances for those returns.
Escrow Money If money is held in escrow pending tax clearance, the form requires details about the escrow amount and the holder's information.
Signature Requirement The form must be signed by the owner, officer, or member of the business, certifying the truthfulness of the information provided.
Mailing Address Completed forms should be mailed to the Tax Clearance Section at the Michigan Department of Treasury, P.O. Box 30168, Lansing, MI 48909.
Business Continuation The form inquires whether the business will continue operations after obtaining the tax clearance.

Michigan 514: Usage Guidelines

Completing the Michigan 514 form is essential for businesses seeking a Conditional Tax Clearance. After filling out the form, it should be mailed to the Michigan Department of Treasury along with any unfiled tax returns and remittances. Follow the steps below to ensure the form is filled out correctly.

  1. Begin by entering the Name of Sole-Proprietorship, Partnership, Corporation, or Limited Liability Company at the top of the form.
  2. Input the Federal Employer Identification Number or TR Number next.
  3. If applicable, list the Owner(s) Name(s) for sole-proprietorships or partnerships, along with their Social Security Number(s).
  4. Fill in the Doing Business As (trade name) section.
  5. Provide the Business Street Address, City, State, and ZIP Code of the location requesting clearance.
  6. If the business is a corporation, enter the Date Incorporated in Michigan in mm/dd/yyyy format.
  7. Next, indicate the Date Business Started at This Location and the Date Business Discontinued at This Location, both in mm/dd/yyyy format.
  8. Input the Ending Date of Last Payroll at This Location in mm/dd/yyyy format.
  9. Answer whether you are continuing business activity after clearance by selecting Yes or No.
  10. If you answered "Yes," provide the Expected Gross Receipts for the Year.
  11. Enter the Residence Address of Discontinued Taxpayer and the Residence Telephone Number.
  12. Indicate if the taxpayer operates more than one place of business by selecting Yes or No.
  13. If applicable, specify if clearance is requested for the above location only.
  14. List the Names and Addresses of Business Locations Still in Operation, using the reverse side if necessary.
  15. Answer whether you have sold or disposed of the business to another entity by selecting Yes or No.
  16. If "Yes," provide the Date of Sale in mm/dd/yyyy format and the Name and Address of Purchaser.
  17. Include the Purchaser’s Federal Employer Identification Number or TR Number.
  18. Indicate if money is being held in escrow pending receipt of a tax clearance by selecting Yes or No.
  19. If "Yes," specify the Amount and the Business Name and Address of Holder of Escrow Money.
  20. Provide the Attention and Holder’s Telephone Number.
  21. List the Month(s) Included on Final Federal 941 Return.
  22. Identify the Name and Location of Holder of Seller’s Books and Records.
  23. Complete the Certification section by printing your name, title, and signing the form.

After completing the form, make sure to gather all unfiled Michigan tax returns and remittances. Mail everything to the Tax Clearance Section at the Michigan Department of Treasury.

Your Questions, Answered

What is the Michigan 514 form?

The Michigan 514 form is a Conditional Tax Clearance Request issued by the Michigan Department of Treasury. It is specifically designed for sole proprietorships, partnerships, limited liability companies, and corporations that have sold most of their assets but intend to remain in existence for tax filing purposes. This form is essential for businesses that need to obtain clearance regarding their tax obligations before proceeding with asset sales or other significant changes.

Who needs to complete the Michigan 514 form?

Any sole proprietorship, partnership, limited liability company, or corporation that has sold most of its assets and wishes to maintain its corporate status for tax purposes must complete this form. This includes businesses that have discontinued operations at a specific location but plan to continue filing tax returns until they decide on further actions, such as filing for dissolution.

What information is required on the form?

The form requires detailed information, including the name of the business, the Federal Employer Identification Number (EIN) or Tax Registration (TR) Number, and the names and Social Security Numbers of the owners if applicable. Additionally, it asks for the business's address, incorporation date, business start and discontinuation dates, payroll ending date, and whether the business will continue operations after clearance.

How do I submit the Michigan 514 form?

To submit the Michigan 514 form, you must complete it in its entirety and send it along with any unfiled Michigan tax returns and remittances to the Tax Clearance Section of the Michigan Department of Treasury. The mailing address is P.O. Box 30168, Lansing, MI 48909. Ensure that all required documents are included to avoid delays in processing.

What happens after I submit the form?

After submission, the Michigan Department of Treasury will review your request for tax clearance. They will assess your tax obligations and any outstanding liabilities. Once the review is complete, you will receive a conditional tax clearance or further instructions if additional information is needed.

Is there a fee associated with the Michigan 514 form?

There is no fee specifically associated with submitting the Michigan 514 form. However, any outstanding tax liabilities or fees related to unfiled tax returns must be resolved before a tax clearance can be granted.

What if my business has multiple locations?

If your business operates multiple locations, you can still request clearance for a specific location using the Michigan 514 form. You must indicate whether clearance is requested for the location listed on the form or for additional locations. It is important to provide accurate information for each location to ensure proper processing.

What should I do if I sold my business?

If you have sold your business, you must indicate this on the Michigan 514 form. You will need to provide the date of sale and the name and address of the purchaser. This information is crucial for the Department of Treasury to understand the transaction and any tax implications related to it.

Can I request an extension for filing the Michigan 514 form?

There is no formal extension process for filing the Michigan 514 form. It is important to submit the form and any associated tax returns as soon as possible to avoid complications with tax clearance. If you anticipate difficulties in meeting the deadline, it is advisable to contact the Michigan Department of Treasury for guidance on your specific situation.

Common mistakes

  1. Incomplete Information: Failing to fill out all required fields can lead to delays. Ensure that all sections, including the name of the business and the federal identification number, are completed accurately.

  2. Incorrect Dates: Providing inaccurate dates for incorporation, business start, or discontinuation can result in complications. Double-check these dates for accuracy.

  3. Missing Signatures: The form must be signed by an authorized individual. An unsigned form will not be processed, so it is crucial to ensure that the appropriate person signs the document.

  4. Not Including Required Documentation: Failing to attach all necessary documents, such as unfiled tax returns or remittances, can lead to rejection of the request. Review the requirements carefully.

  5. Incorrect Contact Information: Providing inaccurate or outdated contact information can hinder communication. Ensure that all contact details, including telephone numbers, are current and correct.

  6. Ignoring Multiple Locations: If the business operates in multiple locations, it is essential to specify whether the clearance is requested for the listed location only. Misunderstanding this can lead to unnecessary complications.

Documents used along the form

The Michigan 514 form is a crucial document for businesses seeking a Conditional Tax Clearance in Michigan. Along with this form, several other documents may be necessary to ensure compliance and proper processing. Below is a list of these forms and a brief description of each.

  • Limited Power of Attorney (Form 3840): This document allows an individual to act on behalf of the business owner when requesting tax clearance. It is essential if the person completing the Michigan 514 form is not the owner or an officer of the business.
  • Final Federal 941 Return: This form reports the wages paid and federal taxes withheld for the final quarter of the business's operation. It is important for the state to verify that all federal tax obligations have been met before issuing a tax clearance.
  • Business Registration Documents: These documents show the legal formation of the business, such as Articles of Incorporation or Organization. They provide proof of the business's existence and structure, which is necessary for tax clearance.
  • Escrow Agreement: If there are funds held in escrow pending the receipt of tax clearance, this agreement outlines the terms and conditions related to those funds. It ensures that all parties are aware of their obligations and the conditions for releasing the funds.
  • Tax Returns: All unfiled Michigan tax returns up to the date of discontinuance must be submitted with the Michigan 514 form. This ensures that the state can assess any outstanding tax liabilities before granting clearance.

Submitting the Michigan 514 form along with these additional documents can help streamline the process of obtaining a Conditional Tax Clearance. Ensuring all necessary paperwork is in order can prevent delays and facilitate a smoother transition for the business.

Similar forms

The Michigan 514 form serves a specific purpose related to tax clearance for businesses. Several other documents share similarities with it in terms of purpose, structure, or the information they require. Here is a list of nine such documents:

  • IRS Form 8822-B: This form is used to notify the IRS of a business change of address or responsible party. Like the Michigan 514 form, it requires identification details about the business and its owners.
  • Form 941: This is the Employer's Quarterly Federal Tax Return. Businesses must report their payroll taxes, similar to how the Michigan 514 form addresses tax obligations upon discontinuation of a business.
  • Michigan Form 4906: This is a request for a tax clearance certificate in Michigan. It serves a similar function as the Michigan 514 form, ensuring that all tax obligations are met before a business is dissolved.
  • Form 1040: The individual income tax return includes information about income and taxes owed. Like the Michigan 514 form, it requires personal and financial details for accurate tax assessment.
  • Form 1065: This is the U.S. Return of Partnership Income. Partnerships must file this form, which collects information about income and deductions, akin to the financial disclosures required by the Michigan 514 form.
  • Form 1120: This is the U.S. Corporation Income Tax Return. It requires corporate financial information, similar to what is needed for the Michigan 514 form when assessing tax obligations.
  • Form 990: Nonprofit organizations use this form to report their financial information to the IRS. It shares the need for detailed financial reporting, much like the Michigan 514 form.
  • Michigan Form 518: This is the Michigan Corporate Income Tax Return. It requires information about corporate income and taxes owed, similar to the disclosures in the Michigan 514 form.
  • Form 2848: This is the Power of Attorney and Declaration of Representative. Businesses may use it to authorize someone to act on their behalf, which is relevant when submitting forms like the Michigan 514.

Dos and Don'ts

When filling out the Michigan 514 form, it's essential to follow specific guidelines to ensure accuracy and compliance. Here are four things you should and shouldn't do:

  • Do complete the form in its entirety. Missing information can lead to delays.
  • Don't provide false information. This can result in penalties or legal issues.
  • Do include all relevant tax returns and remittances with your submission. This helps to expedite the clearance process.
  • Don't forget to sign the form. An unsigned form is considered incomplete and will not be processed.

Misconceptions

Here are five common misconceptions about the Michigan 514 form:

  • It's only for corporations. Many believe that only corporations can use the Michigan 514 form. In reality, sole proprietorships, partnerships, and limited liability companies can also request a conditional tax clearance.
  • Filing the form guarantees tax clearance. Some people think that submitting the Michigan 514 form automatically ensures that they will receive tax clearance. However, clearance is contingent on meeting all tax obligations and requirements.
  • All business locations need to be listed. There is a misconception that all business locations must be included on the form. If a business operates multiple locations, clearance can be requested for just the specific location listed.
  • Only businesses that are closing need to file. Many assume that the form is only necessary for businesses that are shutting down. However, it is also required for businesses that have sold most of their assets but plan to continue filing tax returns.
  • It’s not necessary to attach unfiled tax returns. Some believe that they can submit the Michigan 514 form without including any unfiled tax returns. In fact, all unfiled Michigan tax returns up to the date of discontinuance must be submitted with the form.

Key takeaways

Filling out the Michigan 514 form can seem daunting, but understanding its key components can make the process smoother. Here are some important takeaways to keep in mind:

  • Purpose of the Form: The Michigan 514 form is specifically for businesses like sole proprietorships, partnerships, LLCs, or corporations that have sold most of their assets but need to maintain their corporate status for tax purposes.
  • Complete Information: It’s crucial to fill out the form completely. Missing information can lead to delays in processing your request.
  • Business Details: You will need to provide the name of your business, its federal identification number, and the owner’s name(s) if applicable.
  • Clearance Request: Indicate whether you are continuing any business activities after the clearance. This information is essential for the state to assess your tax obligations.
  • Multiple Locations: If your business operates in multiple locations, make sure to specify if the clearance is requested for just the location listed on the form.
  • Escrow Money: If there’s money being held in escrow pending tax clearance, you must disclose this on the form, including details about the holder of the escrow.
  • Submission: After completing the form, mail it along with any unfiled tax returns and remittances to the Tax Clearance Section of the Michigan Department of Treasury.

By keeping these points in mind, you can navigate the process of filling out the Michigan 514 form with confidence. Taking the time to ensure accuracy and completeness can save you time and potential headaches down the road.